North Carolina Passes Legislation to Suspend Gas Tax Temporarily While Protecting Transportation Funding
The North Carolina General Assembly passed legislation on October 7, 2026, suspending the state's motor fuel tax temporarily through November 30, 2026. The move aims to provide relief at gas pumps while ensuring that transportation funding remains intact by replacing lost revenue from an estimated $362.3 million using funds from the Inflation Reserve. The bill includes provisions for monthly transfers from the reserve to maintain NCDOT and other affected programs, mandates consumer savings be passed along with exceptions for pre-suspension purchases, and offers temporary exemptions for agricultural and commercial users of dyed diesel fuel through December 31, 2026. The legislation also ensures that calculations for setting future gas tax rates in 2027 remain unaffected. State officials estimate consumers could save between 30 to 35 cents per gallon as a result of the suspension. Lawmakers may consider extending it when they reconvene in November, and consumer protection laws are available to prevent price gouging.
